Avon s 2015 Rewards & Recognition Program Terms and Conditions

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1 Avon s 2015 Rewards & Recognition Program Terms and Conditions REWARDS & RECOGNITION PROGRAM OVERVIEW Avon s Rewards & Recognition Program ( the program ) is Avon s premier recognition and rewards program for Avon Independent Sales Representatives. The program is open to all Avon Independent Sales Representatives who are active and in good standing, unless those Representatives fall into a specifically excluded class, such as District 1900 Representatives. Those Representatives will be notified separately that they may not participate in the program. The program runs annually and is based on Avon s campaign cycle (Campaign 1 through Campaign 26). The 2015 program runs from Campaign through Campaign for both Trendsetter and National Representatives. Avon s Rewards & Recognition Program operates on a Points System ( points ). Points are awarded for different types of activity. The most common way for a Representative to earn points is through her achievement of Award Sales. Please refer to the Award Sales section below for more information. The 2015 program offers opportunities for all Representatives to participate, from their very first order through induction into Level 1 President s Club and beyond. As a Representative reaches Level 1 President s Club, she becomes eligible to participate in the President s Recognition Program ( PRP ) and Division Gala Events. As a Representative achieves higher sales levels, she may become eligible for the President s Recognition Program Celebration. For full information on Avon s 2015 Rewards & Recognition Program, please click here. In addition to recognition for Sales Achievement, Avon Independent Sales Representatives who participate in Avon s Leadership Opportunity (known as Leadership Representatives ) may also be recognized in the 2015 program. Leadership Representatives may participate in the program through both recruiting activity and personal sales. Click on the Sales Leadership link at youravon.com to find the Sales Leadership Bonus Chart and details about Avon s Sales Leadership program. For more information and for the Avon Independent Sales Representative Guidelines, please click here. Avon reserves the right, in its sole discretion, to change these levels and any Sales Leadership requirements at any time. AWARD SALES The most common way for a Representative to earn points is through achieving Avon Award Sales. Award Sales are based on a Representative s purchases from Avon. Award Sales are available on almost all products within the Avon Brochure, including skin care, personal care, apparel and accessories. In addition, Award Sales are available when a Representative purchases brochures, demonstration products, samples and sales tools. Avon also sells products that benefit certain charitable causes ( cause-related products ), most notably the Breast Cancer Crusade and Domestic Violence Awareness programs. Most cause-related products count toward Award Sales and, therefore, qualify for the Rewards & Recognition Program points. For a full description of Award Sales, please click here. The 2015 Program uses the following Award Sales Achievement Levels: Contender Representative with Award Sales less than $10,000 Level 1 President s Club (PC) Representative with Award Sales of $10,000 $19,999 Level 2 Honor Society (HS) Representative with Award Sales of $20,000 $34,999 Level 3 Rose Circle (RC) Representative with Award Sales of $35,000 $64,999 Level 4 David H. McConnell Club (MC) Representative with Award Sales of $65,000 $109,999 Level 5 President s Council (CO) Representative with Award Sales of $110,000 $219,999 Level 6 President s Inner Circle (IC) Representative with Award Sales of $220,000+ A Representative s Sales Achievement Level will be reviewed at the close of each campaign to determine at which level the Representative is eligible to participate in the program. The Sales Achievement Level for Licensed Avon Beauty Center ( LABC ) Operators will be combined to include the sales of both the LABC Store Account and the LABC Operator s Personal Account. Returns will be deducted from Award Sales in the campaign in which the returns are processed. 16

2 NEW REPRESENTATIVES Avon s 2015 Rewards & Recognition Program considers every Representative appointed from Campaign through Campaign to be a New Representative. A campaign is defined as a two-week cycle and each campaign is set in advance by Avon. Any Representative who has been removed from Avon s system but who returns to sell Avon with the same account number within thirteen (13) campaigns is not eligible to participate as a new Representative but may participate in the 2015 Rewards & Recognition Program as an existing Representative. This type of Representative is known as a Reinstatement. Representatives who are not Level 1 President s Club or above must be active and in good standing (past due $0) to receive points and redeem these points at Rewards Headquarters. An Operator of a Licensed Avon Beauty Center may not participate in the program as a new Representative. EXISTING REPRESENTATIVES Representatives who have been with Avon for over 26 campaigns are considered existing Representatives. QUARTERLY SALES INCREASE RECOGNITION The 2015 program offers a Quarterly Sales Increase Recognition, which is based on an incremental increase in Award Sales compared to the prior year. The 2015 program is broken into four (4) Quarters. Quarter 1 (Winter) runs from Campaign 1 through Campaign Quarter 2 (Spring) runs from Campaign 8 through Campaign Quarter 3 (Summer) runs from Campaign 14 through Campaign Quarter 4 (Fall) runs from Campaign 20 through Campaign All existing Representatives can participate in the Quarterly Sales Increase Recognition. To be eligible for this recognition, a Representative must increase her quarterly sales by 6% over her prior year s quarterly sales, or achieve the minimum sales requirement for her current Sales Achievement Level, whichever is greater (see pg. 5). Reinstatements, Sales Center-only and Direct Delivery-only Representatives may participate. LABC Store Account and Personal Account sales will be combined for participation. Sales Increase calculations will take place at the close of the last campaign of each Quarter (Campaigns 7, 13, 19 and 26). Sales levels will be reviewed at the close of each campaign. Sales for both the LABC Store Account and the Personal Account will be combined. RECRUITMENT INCENTIVE FOR NEW APPOINTMENTS Any Representative can earn 50 points when her new 1st Generation Recruit places a first order of $100 or more and pays for that order on time. A Leadership Representative can earn 100 points for each new candidate/promoter in her 1st Generation. LEVEL 6 INNER CIRCLE REWARDS When a Representative reaches $220,000 in Award Sales, she becomes eligible to participate in Level 6 Inner Circle of the 2015 Rewards & Recognition Program. Level 6 Inner Circle participants have the opportunity to receive a cash award when specific milestone sales levels are reached. For 2015, these levels are as follows: Upon reaching $220,000 in Award Sales, the Achiever will be issued a cash award of $5,000. An additional cash award of $1,000 will be issued at subsequent increments. To review the Inner Circle Rewards, please click here. 17

3 POINTS EXPIRATION Depending on a Representative s achievement level, points earned from Campaign through Campaign will expire one, two or three years after the close of the program cycle. Points expiration dates are determined by the Representative s sales level at the close of Campaign and are as follows: Contenders: Points will expire on June 30, 2017 Level 1 President s Club: Points will expire on June 30, 2018 Level 2 Honor Society and above: Points will expire on June 30, 2019 Avon reserves the right in its sole discretion to change any aspect of or to suspend the points/rewards program at any time without notice PRESIDENT S RECOGNITION PROGRAM CELEBRATION The President s Recognition Program Celebration ( PRPC ) is a national Recognition Event held annually to recognize Avon s highest-achieving Sales Representatives. ELIGIBILITY Any Representative who has achieved the level required to attend the PRPC is known as an Achiever. The following Representatives are eligible to attend the 2015 event: Level 5 President s Council Level 6 Inner Circle Leadership Representatives with the title of Senior Executive Unit Leader or above (Executive Leader or above) who also have personal sales of Level 1 President s Club or higher. Senior Executive Unit Leaders (Executive Leader and above) and above must be performing as SEUL or higher (Executive Leader or higher) at end of cycle (C ) and within four (4) weeks of the trip to attend the trip, receive awards or receive a cash award if not attending the trip. Achievers who are Title at Risk will not be eligible. An Achiever must be an active Avon Representative during the dates of the trip in order to attend the trip. An Achiever s account(s) must be in good standing past due no more than two (2) campaigns and no more than $500 at least four (4) weeks prior to the trip in order to attend the trip, receive awards or receive a cash award if not attending the trip. Only one (1) trip is awarded or one (1) cash award per account will be awarded if the trip is not attended. Either the primary applicant or the co-applicant on the Avon Independent Sales Representative account (by the close of Campaign ) can attend, unless the co-applicant attends as a buy-in or free guest of the primary applicant, in which case both individuals may attend the trip. If the Achiever or co-applicant does not attend the trip and the Achiever account is deemed to be in good standing and not Title at Risk, the Achiever may receive a cash award of up to $750, which will be provided after the trip date. If the Achiever account earned a free guest and the Achiever (and therefore the guest) did not attend the trip, the Achiever may also receive a second cash award of $750. Please see below for information about guests. FREE TRIP ELIGIBILITY Senior Executive Unit Leaders/Executive Leaders with personal sales of Level 1 President s Club through Level 4 David H. McConnell Club may buy in for a guest to attend. Level 5 President s Council, Level 6 Inner Circle, National Senior Executive Unit Leaders and Senior Executive Unit Leaders (Silver Executive Leaders and Executive Leaders) with personal sales at Level 5 President s Council or higher earn a free trip for a guest. A free guest may attend the trip with the Achiever who has extended the invitation. Coach-class, round-trip airfare from a gateway airport in the U.S. is included. The free guest must be 18 years of age or older. The free guest must room with the Achiever who extended the invitation. NATIONAL RECOGNITION CELEBRATED DURING THE EVENT At the 2015 PRPC event, Achievers will be recognized in the following ways: Traditional Representatives Top 20 in the Nation in four categories: Sales Volume, Sales Increase, Total Unit Sales Volume and Total Unit Sales Increase will be acknowledged and earn a free guest. Top 10 in the Nation in the above-mentioned four categories will be recognized onstage. #1 in the Nation and her free guest in the above-mentioned four categories will fly to the Recognition Event via first class and receive other amenities. 18

4 LABC Representatives Top 5 Representatives in the Nation in Sales Volume and Sales Increase will be acknowledged and #1 will be recognized onstage. Sales for the Personal Account and the LABC Store Account will be combined. A free guest is earned by achieving Level 5 President s Council, Level 6 Inner Circle, SEUL with personal sales at Level 5 President s Council, or National Senior Executive Unit Leader. Achievers may earn awards in multiple categories (for example, #3 Sales Volume in the Nation and #1 Sales in the Nation) and receive recognition and awards for each category earned. Regardless of the number of awards earned, only one trip and one free guest may be earned. Guests Guests must be 18 years of age or older to attend any program event and must be accompanied by the achieving Avon Representative who extended the invitation. A District Sales Manager or another PRPC Achiever cannot attend as a Representative s guest. If a Representative is not eligible for a free guest, the Representative may, under certain circumstances, purchase a place on the trip for a buy-in guest. There is as limit of one (1) buy-in guest per Achiever, and the guest must share the same room. Co-Applicant The trip is awarded to the Representative who is listed as the primary applicant on the account. It is not transferable to anyone other than a co-applicant registered on the account prior to the end of the PRP cycle (Campaigns ). Travel Avon will schedule all airline reservations for Achievers and free guests. There are no reimbursements for reservations made by Achievers on their own. Achievers share accommodations with their free or buy-in guest or with another Achiever if they do not bring a guest. Achievers and guests are responsible for incidentals, including gratuities, telephone calls, meals, transportation and activities not provided by Avon. Other than Service Animals, pets are not allowed (regardless of hotel policy). AVON WOMEN OF ENTERPRISE PROGRAM (AWE) Every year, one Representative is selected to receive the Avon Woman of Enterprise Award. Those chosen for this award are dynamic individuals who are committed to their communities and serve as role models as they share the Avon Opportunity with others. AWE Achievers must be active Representatives in good standing past due no more than two (2) campaigns and no more than $500 with an Avon Length of Association ( LOA ) of at least five (5) years. AWE Achievers must represent Avon credibly and as needed in sanctioned speaking engagements, appearances and other publicity. The Avon Woman of Enterprise current-cycle Achiever may have a free guest at PRPC. For more information about AWE, please click here. PRESIDENT S RECOGNITION PROGRAM DIVISION GALA EVENTS PRP Division Gala Events are typically recognition lunches or dinners held within each Division and hosted by the Division Sales Manager and/or District Sales Manager(s). These events recognize the most successful Representatives within each District and Division. Representatives who have achieved Level 1 President s Club and above are invited to attend. Recognition at these events is as follows: You must be a Level 1 President s Club member or above in good standing past due no more than one (1) campaign to attend the President s Recognition Program Division Gala Event and receive an award. A Sales Leadership Representative must be an Advanced Unit Leader/Leader and a Level 1 President s Club member or above to attend and receive an award. All personal Award Sales will count toward Total Unit Sales. Award Sales include almost all products purchased for resale to Customers and credited at the Customer price, including Avon Apparel and Accessories, plus Representative purchases of brochures, demonstration products, samples and sales tools. 19

5 Cause-related items will count toward PRP Sales Achievement Level (not toward Sales Leadership bonuses). Winners of Division Awards are not guaranteed attendance at the President s Recognition Program Celebration. There will be no Region recognition in Representatives who qualify in more than one category will receive an award for each achievement earned. LABC Store Accounts/Personal Accounts will not participate in District and Division recognition for #1, #2 and #3 Sales Volume Awards; #1, #2 and #3 Sales Increase Awards and Best New Sales Performer Award. To determine the Jewelry and Product Bundle Level to be awarded at Division Gala Events and for recognition at PRPC, LABC Store Accounts and Personal Accounts will be combined and the combined sales level will determine the Sales Achievement Level, which will be designated on the Personal Account. Recognition Product Bundle Gifts will be awarded for the highest level of achievement only. A Representative may receive a gift for Sales Achievement Level and for highest Leadership title achievement. Avon reserves the right at its sole discretion to change the terms of this program and any recognition requirement at any time. GENERAL PROVISIONS Avon reserves the right to change the Rewards & Recognition Program rules, terms and conditions at any time and without prior notice. For the most updated terms and conditions for this program, please click here. Avon will not provide a refund of any fees charged or points redeemed if the Achiever or guest is not satisfied with the trip or accommodations. Avon reserves the right to change the terms of or cancel the trip in the event of a natural disaster, political strife or an act of God. Avon is required by law to file an Income Information Form (1099) with the IRS when the value of prizes, travel, awards, bonuses, etc., including President s Recognition Program awards, totals $600 or more in a calendar year. These amounts are income for tax purposes and any taxes due are the responsibility of the Representative. Points awarded will be reported only when they are redeemed. Avon reserves the right in its sole discretion to change the terms of this program, including any achievement or recognition requirements, at any time. Avon will conduct Award Sales reviews and may determine to remove the Award Sales and adjust Sales Achievement Level for Award Sales not earned in a fair manner. In addition, if necessary, Avon may remove a Representative and close her account(s) to ensure the integrity of the program. Avon reserves the right to disqualify any Representative or Achiever, or to remove recognition or rewards from any Representative for any reason, including if Avon has reason to believe that the Representative has manipulated any Avon or affiliated system or in any way violated program intent. Representatives in the 1900 Districts are not eligible to participate in Avon s 2015 Rewards & Recognition Program. LABC Store Accounts and Personal Accounts may not participate in District or Division recognition. LABCs will participate amongst themselves for Sales Volume and Sales Increase recognition. Award Sales from both accounts will be combined for this recognition. In the event a Representative is removed, she will have thirty (30) days in which to redeem points remaining in her account. In the event a Representative dies while her account is still active, her estate will have sixty (60) days in which to redeem points remaining in the account. In all instances, in order to be eligible for points redemption, the Representative or the estate must pay the Avon account balance in full. Points cannot be applied to the account balance. Avon Products, Inc. January December